Empire Global Corp. Announces 2016 First Quarter Financial Results

Published 11:21 AM ET Wed, 11 May 2016
Globe Newswire

NEW YORK, May 11, 2016 (GLOBE NEWSWIRE) -- Empire Global Corp. (OTCQB:EMGL) a company providing regulated online and offline gaming and wagering through its wholly owned ADM licensed subsidiary Multigioco Srl, announced today it has filed its financial results for the first quarter ended March 31, 2016.

Consolidated corporate results recorded a net loss of $482,839, which included a provision for income taxes of $32,223 due to profits of gaming operations. The net loss of $0.02 per share, the same as Q1 2015, is indicative of amortized non-cash charges and allowances for bad debt as well as front-loaded non-recurring corporate expenses incurred for investment in new locations, payment of loans, interest, commissions and professional fees. We expect these corporate overhead items to fade through 2016 having a much lower impact on overall consolidated results going forward.

Summary and outlook:

Results of segregated gaming operations in the first quarter of fiscal 2016 again recorded impressive performance growth compared to the first quarter of fiscal 2015 as well as the previous quarter in Q4 2015. We are now operating gaming functions on a stable and profitable run rate and are projecting 2016 GAAP revenues to exceed $6 million based on these positive trends. Significantly, our Land-based division performed 26.7% better than expected with an average net income of approximately $3,800 compared to internal forecasts of $3,000 on a per location basis. With administration and operational infrastructure now stabilized, our priorities now focus on scaling up the high margin Land-based division to over 100 locations with the imminent Italian gaming licence renewal in June 2016.

Mr. Michele Ciavarella, Chairman and CEO of Empire Global Corp. commented, “Empire Global Corp continues to show strong revenue growth and practical stewardship. Our segregated Land-based division revenue results were most dramatic in Q1 2016 with an increase of over 100% compared to Q1 2015.” Mr. Ciavarella also stated, “Our Q1 2016 gaming results are also a strong indication of effective positioning for the approaching 2016 Land-based license renewal. Multigioco is now setup for bolt-on additions with plans to acquire at least 100 Land-based Rights at the government auction while our online division will continue to capitalize on the forced consolidation of unauthorized dotcom operators in Italy under our unique 2021 Online license.”

About Empire

Empire Global Corp., together with its wholly owned subsidiaries, Multigioco Srl and Rifa Srl, is a licensed gaming operator. The company conducts its business primarily through our internet-based gambling and sports betting platform under the registered brand Newgioco on our licensed gaming website www.newgioco.it as well as land-based neighborhood betting shops situated throughout Italy.

The company, through its online gaming website and shops, provides a full suite of gaming products and services, such as sports betting, online casino, poker, and bingo and interactive games. Additional information is available on our corporate website at www.emglcorp.com.

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," “forecast,” "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements.

Factors which may cause such differences include the company's ability to complete additional acquisitions, expand our distribution, increase our client base and other risks disclosed in the company's SEC filings. The company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information covered in this press release, including such forward-looking statements.